What is collateral category in SAP IS-B-RA-CL - Default Risk and Limit System?

SAP Term: collateral category

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: Differentiates between personal collateral and tangible collateral.

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• Key Concepts: 
  Collateral category is a component of the IS-B-RA-CL Default Risk and Limit System. It is used to classify different types of collateral that can be used to secure a loan or other financial transaction. Collateral categories are used to determine the risk associated with a particular type of collateral and the amount of collateral that is required for a given transaction. 
  
  How to use it: 
  The collateral category component of the IS-B-RA-CL Default Risk and Limit System is used to classify different types of collateral that can be used to secure a loan or other financial transaction. The system allows users to define different categories of collateral, such as cash, real estate, stocks, bonds, and other assets. The system also allows users to assign risk levels to each category of collateral, which helps determine the amount of collateral that is required for a given transaction. 
  
  Tips & Tricks: 
  When setting up the collateral category component of the IS-B-RA-CL Default Risk and Limit System, it is important to consider the risk associated with each type of collateral. This will help ensure that the right amount of collateral is required for each transaction. Additionally, it is important to regularly review and update the categories and risk levels associated with each type of collateral in order to ensure that they remain up-to-date. 
  
  Related Information: 
  The IS-B-RA-CL Default Risk and Limit System also includes components for setting up credit limits, defining default risk levels, and managing customer accounts. Additionally, there are other SAP components that can be used in conjunction with the IS-B-RA-CL Default Risk and Limit System, such as SAP Credit Management and SAP Credit Risk Management.